July 2016 encumbrance processing – 08/15/16 UPDATE

posted Aug 15, 2016, 10:05 AM by Peyri Herrera

From MITI: The July 2016 encumbrance processing in HCM is complete. This includes posting the annual baseline encumbrances, the unencumbering of the July payroll, and the encumbrance maintenance process to update encumbrances based on changes made in HCM. Please read below for detail on these processes.

Encumbrances are updated based on the employee’s last payroll. Employees paid in July often do not have health & welfare benefits payments processed so they are not included in the encumbrances. Employees that were not paid in July will have their encumbrances based on their June pay so 2017 funding changes will not yet be reflected in their encumbrances.

Where are we now with July encumbrances? Monday morning budget checking of pre-encumbrances and encumbrances was run and once completed it will update the commitment accounting ledgers (Step 4 of How payroll encumbrances are calculated).

The MITI team continues to review the encumbrance process to provide the best information possible. The latest update to the Encumbrance Maintenance process was to exclude encumbrances associated with one-time earnings such as retro (RRP), extracurricular activity (XAR), overtime (OT1, OT2, OT5), vacation pay off (VPO), and various other earnings that are not part of the employees’ normal month earnings. Still in development is expanding the encumbrance maintenance process to include exception hourly employees deductions that are not currently being encumbered.